Canadian PE investing on track to reach C$20bn in 2021: CVCA

Canada’s private equity market saw C$4.3 billion invested in 206 deals in the third quarter of 2021, according to a report issued this week by the Canadian Venture Capital and Private Equity Association.

Canada’s private equity market saw C$4.3 billion invested in 206 deals in the third quarter of 2021, according to a report issued this week by the Canadian Venture Capital and Private Equity Association. The activity brought the year-to-date total to C$13.2 billion invested across 584 deals. CVCA said the data suggest PE investment in Canada is on course to reach C$20 billion this year, with deals trending towards the highest annual number on record.

PRESS RELEASE

CVCA Q3 2021 YTD Private Equity Canadian Market Overview: Canadian PE Investment on Track for CAD $20B Invested This Year; PE-Backed Exits Performing at Pre-Pandemic Levels

TORONTO – November 26, 2021 – The Canadian Venture Capital and Private Equity Association (CVCA) today released its quarterly report focused on Canadian private equity (PE). CAD $4.3B was invested across 206 deals in Q3, bringing the year-to-date total to CAD $13.2B invested across 584 deals; trending towards the highest annual number of PE deals on record (661 deals in 2019).

Of the 584 PE deals that closed in the first three quarters of 2021, 84% of the deals with disclosed values were under CAD $25M. There were four mega-deals (CAD $500M+), all of which closed in Q2, accounting for 33% of total dollars invested year-to-date (CAD $4.4B).

The information communication technology (ICT) sector continued to lead in the third quarter, accounting for 23% of all PE investment activity and 25% of all dollars invested, an indication of the maturing of Canada’s tech sector. Investment in the financial sector only accounted for 4% of total activity, however, the sector experienced the third highest share of dollars invested, 17% or CAD $2.2B. The industrial and manufacturing sector remained steady with 20% of all PE activity (114 deals).

“We are on the journey through post-pandemic recovery,” said Kim Furlong, Chief Executive Officer, CVCA. “Some of the performance figures we’re seeing in Q3 are trending towards pre-covid levels. The consumer and retail sector, for example, has seen some significant investment growth, at almost five times the levels experienced since a low in 2018. The majority of PE investment so far this year was under CAD $25M – directly connected to our SMEs and demonstrating the critical role private equity plays in Canada’s recovery.”

2021 is on track to be the year with the most PE-backed IPOs on record and is already tied in second with 2017 with 5 IPOs overall. There have been 54 PE-backed exits in 2021 overall, with 35 M&A transactions and 14 secondary buyouts. 2021 is pacing well above pre-pandemic levels, with total activity in 2019 at 44 exits, but behind the all-time high set in 2017 at 151 exits.

About the CVCA
Our vision
A thriving Canadian economy driven by private capital
Our Mission
CVCA’s mission is to help our members fuel the economy of the future by growing the businesses of today. We do this by supporting and connecting a vibrant private capital industry with advocacy, research, and education.
CVCA is also the nation’s ultimate resource for data on Canadian private capital investments. Please visit: http://www.cvca.ca.